The present work has evaluated how raw material, addition of emulsifying salts (ES) and drying technology affect particle characteristics, structure, and hydration of cheese powders. In this context the spray drying technology induced the strongest effect on morphology and swelling of cheese powder particles. The absence of ES caused formation of irregular and rough powder particles, which is suggested to be due to presence of free fat on the particle surface. No differences in water or fat mobility in the dried powders were observed by ¹H low field-nuclear magnetic resonance. Agglomerated powder particles showed enhanced swelling but unchanged hydration properties compared with non-aggregated powder. Rheological measurements indicated the presence of a stable and elastic network after hydration.